India’s Semiconductor Leap: 4 New Plants Approved in Odisha, Punjab, Andhra

On August 12, 2025, four additional semiconductor manufacturing projects received approval in India, raising the total number of sanctioned projects to 10. Collectively, these projects reflect an investment commitment of approximately INR 1.60 trillion (US$18.23 billion).

India’s Union Cabinet approved four additional semiconductor manufacturing projects under the India Semiconductor Mission (ISM) on August 12, 2025. The newly approved plants will be located in three states, namely, Odisha, Punjab, and Andhra Pradesh.

This represents a combined investment of approximately INR 46 billion (US$524.39 million) and is expected to generate employment for over 2,000 skilled professionals. This also includes creating indirect job opportunities domestically across the electronics manufacturing ecosystem.

Expansion of India’s semiconductor manufacturing: Project locations and collaborations

As per the announcement, India has given the nod to four companies for semiconductor manufacturing:

1. SiCSem Private Limited,
2. Continental Device India Private Limited (CDIL),
3. 3D Glass Solutions Inc., and
4. Advanced System in Package (ASIP) Technologies.

The projects aim to meet the surging demand for semiconductors across diverse sectors, including telecommunications, automotive, data centers, consumer electronics, and industrial electronics.

In Odisha, SiCSem Private Limited, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will set up India’s first commercial Silicon Carbide (SiC) compound semiconductor fabrication facility in Bhubaneswar. The facility will reportedly have the capacity to produce 60,000 wafers and package 96 million units annually. Alongside this, 3D Glass Solutions Inc. will establish an advanced packaging and embedded glass substrate facility in the region, utilizing technologies such as glass interposers, silicon bridges, and 3D Heterogeneous Integration modules.

In Punjab, CDIL will expand its production at the Mohali plant to produce high-power discrete semiconductor devices. This includes metal–oxide–semiconductor field-effect transistors (MOSFETs), insulated-gate bipolar transistors (IGBTs), and Schottky Bypass Diodes—leveraging both silicon and silicon carbide technologies.

Meanwhile, in Andhra Pradesh, ASIP Technologies, in partnership with South Korea’s APACT Co. Ltd., specializing in testing and packaging solutions for semiconductors, will build a facility with an annual capacity of 96 million units to serve multiple electronics applications.

These projects introduce India’s first commercial compound semiconductor fab and a modern glass-based packaging unit.

READ MORE: Semiconductor Industry in India: Incentives and Key Players

Scaling up chip production under ISM

With the latest approvals, the total number of sanctioned projects under ISM has reached 10, attracting cumulative investments of around INR 1.60 trillion (US$18.23 billion) across various regions in the country.

Source: India Briefing

Expanding semiconductor design capacity

India has also extended design infrastructure support to 278 academic institutions and 72 start-ups. In July 2025, the Ministry of Electronics and Information Technology (MeitY) approved 23 chip design projects from startups, micro, small, and medium enterprises (MSMEs), and academic institutions. These projects focus on applications such as surveillance systems, smart meters, networking equipment, and microprocessor IP cores.

So far, 10 startups have secured venture capital, six companies have completed prototype tape-outs at international foundries, and 17 institutions have fabricated 20 chip designs at the semiconductor laboratory in Mohali, Punjab. The scheme’s sanctioned outlay has reached INR 8.03 billion, offering up to 50 percent cost coverage for design and prototyping (capped at INR 150 million) and 4–6 percent performance-linked incentives on net sales for five years (capped at INR 300 million).

Conclusion

The latest approvals under the ISM mark a major leap for India’s semiconductor ecosystem. These projects are expected to reduce import dependency and position the country as a competitive player in the global advanced electronics manufacturing landscape.

By expanding both manufacturing and design capacities across multiple states, India is positioning itself as a competitive player in the global semiconductor value chain. These initiatives also open avenues for technology innovation, high-value job creation, and increased participation in strategic sectors such as automotive, telecom, and industrial electronics.

(US$1 = INR 87.71)

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